Some thousands (!!!) hedge funds of the different sizes are in small towns Stemford and Greenwich (they are located a row), the State of Connecticut. Work there from the technical point of view is similar to investment banks... however - there are less than nerves, "juice extractor" is less, is closer to suburbs where responsible people (not New Yorkers), it seems as less promised bonuses live, and... it is more than stability, strangely enough.
Even running on interview (matter of course, I couldn't work in all places at the same time, collecting statistics for this article), it was possible to notice that in hedge funds quieter atmosphere, technically, on level of experts - they at least, don't concede to banks (surpass rather). Generally it is clear - hedge funds have no broker business, there is clearing, and proshchy "ощипа" no commission charges, there is no also a possibility to give out money under the percent appointed by a federal reserve... but they need to do real grandmas, increasing the capital of the clients - millionaires. Actually, once this function was carried out by investment banks. Simply at some instant this business "separated" in separate category of firms - possibly when the zaregulirovannost of the financial industry began to smother any possibilities of risky investments in big banks. Programming engineers - - - - - - - - - - - - there are necessary approximately same, as in banks - only work there more human. In banks the people sit more often at trading tables (though there are exceptions.) In funds - in normal cubes. There is no foolish dress-code, at least, not for engineers (in banks, and in general, big firms of East Coast - suits ties are accepted.) About trading systems, however, neither in banks, nor in hedge funds especially didn't hear - analytics, Monte-Carlo, models. Eventually, it is clear - still it was a question of investment companies, and all this occurred before crash of mortgage loans. So proceeded years so to 2008 when under general охи and ахи it became clear that high-frequency of firm appeared unique who didn't lose money on exchange crash. Large banks reacted instantly: one hand they lifted a turmoil in the press and in the Congress, "to forbid High-Frequency Trading!", and other hand - started to create urgently at itself HFT departments. Citadel already mentioned above appeared one of the first major companies who got department of high-frequency of trading.
And the hedge fund is in fact the same, as mutual fund - only "for rich". :) As a rule, the hedge fund is private firm (many mutual funds are the public companies), hedge funds are much less regulated, their investment strategy more risky (as a result - or bring big profits, or are ruined... as a rule - make profit.) Hedge funds are limited in number of investors - one hundred - another of clients - and all more often; the truth, the minimum accepted deposits begin somewhere so with one million dollars. Why so? Why they "don't start up simple people", you ask? Yes because "simple people" don't understand and don't want to accept one simple rule of investments: the high income is always connected with high risk. Therefore there is a mass of the laws protecting "frayer big-eared" from the most brave investments. At the same time - from the most profitable. Because, God forbid, something will occur (and the risk - is high!) - "the simple person" will be terribly dissatisfied that it not опекли, didn't protect, etc. Well - here also sponsor. :) The biggest hedge funds on the size don't concede also to banks: the Citadel hedge fund (in the world) has one of the largest hedge funds under the management of 15 billion dollars.
If it is very rough, that payevye investitsionnye fondy (mutual fund) in Russian is called, in America call "mutual funds" (as though it to translate... "mutual funds"? well, let there will be "trust funds" - transfer not so, but in fact - most that.) An essence of this piece in the following: the lot of people chips in together the money, and gives them to fund. The fund speculates on the Stock Exchange, puts in bonds, generally - has a good time. The purpose of this business - to increase the invested money so that both clients were happy, and to employees of fund that перепадало. Are engaged in it in everything - not sickly professionals, type. The investor has some control over the enclosed money - type, it let's allow "enclose team 20 % of the savings in sector of telecommunications". Well, matter of course, all this "games on paper"... in reality the investor influences not the decision of fund to invest money there or here, but only on the share of profit. Typical mutual fund (as well as all estimates on this site, here - my personal opinion) roughly blossoms the first some years, increasing profit in the unprecedented sizes; having got reputation, the fund becomes more careful, and at last as all "careful" - brings in the ridiculous income (catching up inflation, we will tell - I mean, not official, but real) and/or rots and rolls down in any troubles. As a rule, mutual funds are calculated on the pension plan - therefore any troubles simply manage to happen... :)